[Vision2020] The Wal-Mart Effect on Moscow

joekc at adelphia.net joekc at adelphia.net
Sun Feb 12 13:43:04 PST 2006


Donovan,

If you could find one individual who says they will not attend UI unless it gets a Super Wal-Mart as opposed to a mere Wal-Mart, or one person at UI who has heard such a conversation, then I'll consider you to be more of a realist than I am. 

Maybe I'm wrong but I don't think that the town council has had a member in recent years who is more supportive of affordable housing than Bob Stout. I'm interested to see what he does! Hopefully we'll be able to continue this conversation after he's been given some time to do some work.

--
Joe Campbell

---- Donovan Arnold <donovanjarnold2005 at yahoo.com> wrote: 

=============

Joe,

You wrote:

"I did not deny that many students "make a determination on where to go 
to college based on the affordability of the college and town." I 
denied that whether a town had a Super Wal-Mart as opposed to a mere 
Wal-Mart had anything to do with their decision making."

Let us follow this logic;

IF A) Wal-Mart increases the affordability of attending college.
IF B) Super Wal-Mart increases the affordability of attending a college even more.
IF C) Affordability of attending a college is a factor.
      .
Then . . Even greater affordability is not a factor in attending college. 

Does not seem to follow my understanding of the economic model or logic.

I believe that when prices goes down, affordability goes up. When
prices goes up, affordability goes down, assuming we are using constant
dollars.


"I will add that I am not a fatalist. I think that something can be done 
about the affordable housing problem in Moscow and that Bob Stout and 
the other council members will do something significant over the next 
few years provided that they work together on this issue. There are 
plenty of other factors besides taxes that play a role in housing prices."

You are obviously not a realist either. The city has had
been saying that for 25 years, yet nothing. Governments cannot
raise taxes and oppose the expansion of businesses and housing 
and expect housing prices to decline. 

If the city of Moscow wanted to decrease housing prices, and
property taxes, it could do so by pushing for mass housing
construction. That would slow down property value increases
reducing property tax increases, and reduce demand, reducing
rent. But the city would never do that. Moscow leaders want a
0% growth rate, and they pretty much have it. 

Take Care,

_DJA
  

joekc at adelphia.net wrote:  Donovan,

I  did not deny that many students "make a determination on where to go to  college based on the affordability of the college and town." I denied  that whether a town had a Super Wal-Mart as opposed to a mere Wal-Mart  had anything to do with their decision making. Issues like affordable  housing have much more to do with their decision making when it comes  to matters of "the affrodability of the college and town." That is all  I said.

I will add that I am not a fatalist. I think that  something can be done about the affordable housing problem in Moscow  and that Bob Stout and the other council members will do something  significant over the next few years provided that they work together on  this issue. There are plenty of other factors besides taxes that play a  role in housing prices.

Joe Campbell

---- Donovan Arnold  wrote: 

=============
Joe,
  
  Believe it or not, most students and their parents do make a  determination on where to go to college based on the affordability of  the college and town. Having a large discount retail store and a large  discount grocery store available to them does impact affordability. If  you don't believe college students depend on discount retail, go to the  Wal-Mart and ShopKo parking lot and count the number of student cars.  Go down to Lewiston and count the student cars there. Go to the Super  Wal-Mart near BSU and look for the student cars. You will find plenty  near any publicly funded university or college.
  
 Wal-Mart  wants to expand because it is responding to student and other consumer  demands for increased availability of goods and services. That is the  way supply and demand works. Wal-Mart would not want to be expanding if  consumers did not want it. 
  
 For every 50 students the UI  fails to retain or does not attract to UI, Moscow loses about $1  million in federal and state dollars per year. $1 million that will not  be going to local businesses and establishments in Moscow but some  other town like Boise that can meet or better meet student needs and  demands. 
  
 Regarding the other issue of affordable housing,  the reason housing is unaffordable is because of heavy property taxes  and housing units with overinflated market values. Moscow has a slew of  vacant affordable housing units because students do not qualify for  them because you cannot be a single college student and be in most  subsidized housing in Moscow. Second, the subsidized housing units in  Moscow are still higher than unsubsidized housing units in most other  cities in Idaho including Boise. If you are a non-college student, why  rent a subsidized apartment in Moscow for $450 when you can buy a house  in Potlatch or Deary for $475 a month? If people want to make housing  affordable in Moscow they need to reduce the property tax rate, that is  the only way aside from building more housing units then we need.  Moscow has no control over the property tax values.
  
  Take Care,
  
  Donovan J Arnold
  

joekc at adelphia.net  wrote:It is just incorrect to think that ANY student makes a decision  about where to go to school based on whether or not there is a Super  Wal-Mart in the town, as opposed to just a regular, old Wal-Mart.

And  if you think that your argument is correct, Donovan, why not work with  Bob Stout and other council members to do something about affordable  housing in Moscow? That would make a real difference.

--
Joe Campbell

---- Donovan Arnold  wrote: 

=============
        The Wal-Mart Effect on Moscow 
  Many of Wal-Mart’s detractors erroneous like to make the claim  that Moscow’s quality of life and economy is based upon the  small number of locally owned and operated retail establishments. But  any rational person understands that Moscow’s economy and job  market is primarily based upon the University of Idaho. The survival of  local businesses depends upon the wealth passed on from the University  of Idaho. 
           
 The wealth of the University is  dependent upon federal and state dollars allocated to it based on  student enrollment. Enrollment is based on two factors, the number of  students that stay at UI, or retention rate, and the number of new  students. The retention rate, according to Michael Griffle, the  Director of University Residents at UI, has dropped from 90% to below  77%. The primary reason is because of the lack of affordability of  living in Moscow. In addition, according to a recent report put out by  UI President Tim White, the new students being obtained by the  University are increasingly minority, non-traditional, and first  generation students, or students with generally less means and wealth. 
           
  A lower student enrollment will reduce the amount of money and  resources to Moscow from the federal and state government. This in turn  will reduce the amount of money that will be spent on local businesses.  It will also reduce the number of jobs at the University and in turn  the local private business sector of the community. 
           
  While many can successfully argue that tuition and fees at UI remains  among the lowest, they would be fighting a losing battle to claim that  Moscow is an inexpensive to live. Rent in Moscow is one the highest in  the state. Gas and utilities are also very prohibitive. When other  costs are added in, such as few public transportation options,  increases on food, video rentals, and a $5.15 an minimum wage, Moscow  becomes truly prohibitive and inhospitable for many poor college  students. 
           
 Wal-Mart provides at least some relief  from the unaffordable Moscow. College students need the $99 futon, the  $40 microwave, the $35 DVD player, and the $5 lamp. They depend upon  it. They do not care if the thing breaks within two years; they only  need it till May. They do not have the money to buy the $250 bed, the  $100 microwave or the nice DVD player, nor do they have the resources  and time to haul it all home in nine months and back again in two and  1/2 months. 
           
 Moscow businesses are not in  competition with a Wal-Mart just at 185 Warbonnet Drive. They are also  in competition with a Super Wal-Mart near BSU, a Super Wal-Mart near  ISU, and a Super Wal-Mart near every community college and university  that caters to lower and middle income students. Ignoring this fact  does not make it untrue. The best survival for local businesses is to  allow Wal-Mart to meet the basic needs of college students so  enrollment stays up while they provide services and goods Wal-Mart does  not provide. Not providing goods and services to students that fits the  student budget in the hopes that it will force them to pay a higher  amount of money at a local shop is a poor long term strategy and is  obviously failing as UI students opt to finish their education in a  more affordable town. 
           
 Local citizens concerned  about local businesses need to turn their energy towards retention and  recruitment for UI and reducing the costs of living for college  students as well as buying locally when they can afford it. $1000 a  month for rent and $5 for a pound a beef in a town that pays $5.55 an  hour will kill your local economy more quickly then any Super Wal-Mart.  Killing competition inside Moscow’s boarders kills  Moscow’s competitiveness outside its boarders. UI and Moscow  need a Super Wal-Mart to remain competitive with other universities and  colleges. 
               
  -Donovan J Arnold
    
  
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